In India, This Employee Negotiation May Be Unfamiliar to U.S. Businesses

India, by most measures, is a business-friendly country. But that doesn’t mean it’s easy to set up employees there. In fact, there is one aspect of an employee’s onboarding process that is both critical and utterly difficult for U.S.-based human resources. It is known as the Cost to Company, or CTC. Ankit Balani, India Country Manager at Globalization Partners, explains why this contractual provision is so challenging to negotiate.

For starters, base salary might only make up about 40 percent of the total CTC. The balance consists of a variety of allowances including not typically seen in U.S. employment. These include house rent allowances, medical allowances, travel allowances, and vehicle allowances.

Globalization Partners helps companies expand internationally without having to set up a subsidiary in country. Globalization Partners can help determine the most tax-efficient way to structure a CTC, while also managing the tax exposure of the client.

Bret Silverberg

Director, Content Strategy, Globalization Partners

Bret Silverberg joined Globalization Partners in April 2017 as Director of Content Marketing. Bret has extensive experience in publishing, including his background in human resources and employment marketing.

Running to more than 400 pages, the UK government offers extensive guidance on the new mandatory pension requirements, from who is eligible and how to determine that eligibility, to communicating the …

This material has been prepared for informational purposes only, and is not intended to provide, nor should you rely on it for, legal, tax, or accounting advice in any jurisdiction. You should consult your own legal, tax, and accounting advisors as part of your expansion plans.